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Naval Disasters, World War Two and the British Stock Market

Hudson, Robert; Urquhart, Andrew


Robert Hudson

Andrew Urquhart


This paper studies investor sentiment by examining the impact on the British stock market of naval disasters. Since the British Empire was a world power and its navy was held in great regard, Britain was dependent on control of the sea for survival during World War Two and the sinking of capital ships was a huge blow to the fight against the Axis powers. We find that the market was only significantly affected by a handful of naval disasters which have very clear strategic and political importance. The market was generally not affected by other individual disasters or successes, no matter how emotive those disasters were.


Hudson, R., & Urquhart, A. (2022). Naval Disasters, World War Two and the British Stock Market. Research in international business and finance, 59,

Journal Article Type Article
Acceptance Date Sep 19, 2021
Online Publication Date Sep 24, 2021
Publication Date 2022-01
Deposit Date Sep 20, 2021
Publicly Available Date Mar 25, 2023
Journal Research in International Business and Finance
Print ISSN 0275-5319
Publisher Elsevier
Peer Reviewed Peer Reviewed
Volume 59
Article Number 101556
Keywords Naval disasters; Stock returns; World war two; Sentiment
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